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India Poll Results Lift Stocks by 17%

By

Jackie Range

Updated May 19, 2009 12:01 a.m. ET

NEW DELHI -- India's new government may be poised to give the economy an extra boost just as it is showing some signs of recovery on its own, a combination that cheered investors and drove Indian stocks up 17% Monday.

The new political makeup, after the ruling Congress party and its allies sailed to victory in national elections Saturday, suggests an era of stability that could allow the government to pursue reforms in some sectors of the economy, such as retail and insurance.